Meta Platforms' AI spending may strain cash flow as capex climbs
Meta Platforms' founder and CEO Mark Zuckerberg says AI is a generational opportunity, backing that claim with a planned $135 billion to $145 billion capex budget for 2026. The company’s operating margin fell to 20% in Q3 2026, down from 40% a year earlier, and it posted a negative free cash flow of $2.1 billion for the quarter.
Key points
- Meta plans $135 billion to $145 billion capex in 2026 while operating margin fell to 20% in Q3.
- Ad revenue jumped 25.9% YoY, driven by 10% more impressions and 14% higher pricing.
Advertising revenue rose 25.9% year over year, helped by a 10% lift in impressions and a 14% rise in pricing, though the article notes it is impossible to isolate how much of that gain comes directly from AI. Meta’s new Muse AI agent, launched on Sept. 8, quickly reached 10 million users in the U.S. and Canada, with 25% using it daily, and the company also introduced Muse Wonder, its first frontier model, alongside the Meta Enterprise Platform for corporate AI tools.
Operating cash flow grew 21.7% year over year through the first nine months of 2026, but that lagged the 72% growth in capex. The firm has announced a plan to raise almost $100 billion in equity capital to fund the AI build‑out, leaving investors to watch whether cash flow can eventually outpace spending.
Model page: Muse Wonder →
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6 episodes →- Meta Platforms' AI spending may strain cash flow as capex climbsthis story
3 Numbers to Watch to Know if Meta Platforms' AI Spending Is Paying Off
fool.com · 31 October 2026
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